LOOK WHOS
WATCHING NOW
A SNAPSHOT OF HOW CONSUMERS
INTERACT WITH ONLINE VIDEO
CONTENT AND ADVERTISING
adroitdigital.com
Contents
Introduction 3
Objectives & Methodology 4
Major Findings 5
Demographics 6
Survey 7
Conclusion 18
About Adroit Digital 19
Contact Us 19
On August 1, 1981, MTV aired its first video, The Buggles Video Killed the Radio Star.
Fast-forward to 2014 and radio is still very much alive and well, although it has transformed.
Interestingly, both radio and video (broadcast/cable television) are currently undergoing
what some might call radical changes.
Digital entrepreneurs and the rapid consumer adoption of new technologies have driven
both of these advertising mainstays onto the Internet, and not by their choice. Radio and
the music publishing industry saw the first shot come across their bow with Napster.
Broadcast and cable TV now have a similar situation on their hands with the likes of Aereo
and other innovative content providers and over-the-top (OTT) devices. The impact of this
shift is so profound that the United States Supreme Court will soon rule on how copyright
protected video content can be distributed. This represents a potentially major blow to
broadcastersspecifically related to their revenue stream from royalties, distribution fees,
and advertising. However, this may turn out to be a major win for consumers. They will find
themselves squarely in the drivers seat when it comes to what, when, and where theyll
consume their audio and video content, including how theyll pay for it and the amount of
advertising to which they choose to be exposed.
In this shifting landscape, where does this leave broadcasters/content providers and the
advertisers that depend on them to reach their audiences? The good news for advertisers is
video consumption is on the rise. Much like video didnt kill the radio star, online/on-demand
video wont kill network television or the distribution networks (cable, satellite, and local
affiliates) that deliver their content. According to eMarketers recent report on US media
consumption, overall daily media consumption has risen over 20% from 2010 to 2014. When
the focus is narrowed to video only, the story is more dramatic. While TV consumption has
grown slightly over 1% in the same period, digital video consumption (online and mobile)
has increased over 900%* (this with the caveat that the starting data point is very small).
According to eMarketer, Americans own more devices than ever before, and they are
spending increasing amounts of time with them collectively.* These devices have opened
up an entirely new space for simultaneous media usage.
From an overall major media perspective, this all becomes a game of dollars and cents. Who
will win the race is far from being determined. But these changes will have a lasting effect on
advertisers and how they approach reaching audiences through various video channels
across multiple screens, all enabled by new technologies.
The study was fielded from April 17 through April 21, 2014. The survey targeted a
random sample of United States consumers who self-identified as 18 years of age
or older and owning a television, smartphone, and personal computer or laptop.
The study garnered 2,000 completed surveys.
63% of our respondents said that if an online provider 68% of respondents would be more influenced by a
could satisfy their broadcast TV viewing needs, they short video than a text-based ad when seeking new
would cancel their cable subscription. Men appear to product information. 70% of men compared to 64% of
be more likely to cut the cord than women, 67% women, and 72% of those 1824 compared to 62% of
compared to 57% respectively. 66% of 1824-year-olds those 45 and over, would be more influenced by a short
would cut the cable cord. This number decreases with video compared to a static or text-based piece of
those 45 and over at 51%. content.
68% of all viewers surveyed are consuming video 51% of all respondents indicated when watching a
content from YouTube; 51% are consuming video 30-minute recorded or on-demand program that they
content from live television broadcasts, and, almost are more likely to watch the entire program including
equal to TV, 49% are consuming video content from commercials than not.
Netflix. Women are bigger Netflix viewers than men,
56% to 43% respectively. 56% of all respondents indicated they skip online video
ads most of the time. However, 20% dont skip online
59% of all respondents believe their TV set is transforming video ads most of the time. 24% let the online video ad
into an overgrown monitor for their self-selected content determine if they would skip the ad.
content viewing. Men and young adults have a stronger
belief in this transformation than do women or older 75% of our respondents indicated that there is someone
adults. 69% of men believe their TV is becoming more else in their home accessing video content at the same
like a monitor for self-selected programming compared time they are via different devices oftentimes or
to 51% of women. 63% of those 1824 believe the same. sometimes. 30% indicated there are often others
It is only in the 45+ age group that the minority, 47%, viewing at the same time they are.
holds this belief.
46% of respondents indicated 15 seconds or under as
36% of all respondents indicated that more than half of the optimal length for a video advertisement. 35%
their video consumption is on-demand as opposed to indicated the optimal length to be 16 to 30 seconds.
live broadcast television. 13% of all respondents watch The minority, 19%, believed 31 seconds or over was the
more than 75% of their video content on-demand. 35% optimal length.
of 1824-year-olds compared to 32% of those 45 and
over are consuming more than half of their video
consumption from an on-demand source.
Gender
14%
43% 57%
34%
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15%
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QUESTION of streaming
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video content through a game console or
How many hours do you spend per week web TV device.
consuming online or streamed video content
Men are more likely than women to
through a game console or web TV device
consume between five and fifteen hours
(Apple, Roku, Chromecast)? weekly of streaming content, 38% to 35%
14%
43% 57% respectively.
34%
When49% 51% (those
it comes to power-watchers
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35% watching 15 hours or more of streaming
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1530 17% ages 1824, and the oldest respondents, age
1824
1824/45+ 24% 3544 33% 45 and over, fell on the lower end of the
30+ 11% power-watcher scale at 24% each. 2534
45+ 53%
3544
It appears all eyes are on streaming video. 45+
77% The question is, are advertisers keeping
their eyes on the ball?
68%
IS BROADCAST TV READY TO
70% SHARE THE SPOTLIGHT?
Women 56%
3544 50%
30%20% 24%
68% of all viewers surveyed are consuming video
2534
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content from YouTube; 182451%
16%are consuming video
25%
Women 32%
22% 5%
consuming video content MEN from
25% Netflix. 10 to 30
WOMEN 38% More th
Men and women select video content from different
3544 35%
sources. They both indicated approximately the same
level of consumption for live television. 30%
30% when it comes to Netflix and DVR content,
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10 to
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k
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Base: n=2,000 Sums may not equal 100 due to rounding
37% With
or fam
37%
ITS ALL ABOUT TIMING
How long do you spend watching any one piece
70% 68%
of video content on average?
Women 56%
51% 10%
49%
30%
Men 43%
1 to 10 minute
Men 28%
22% 35+ 5%
MEN 25% 10 to 30 minu
WOMEN 38% More than 30
3544 35%
30%
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When it comes to how long a viewer will watch any one piece of
video content, the answer seems unclear for advertisers as to what
should be the optimal length for engagement.
05 35% from 1 minute to more than 30 minutes. The minority, 10%, stop
viewing in less than one minute. Watch in
Men 38% entirety
515 Women 35% 37%
Women are more likely than men to consume one Skip through
piece of video
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1530 17% content for more than 30 minutes with 38% compared to 25%.
1824/45+ 24% 3544 33%
30+ 11% 1824-year-olds indicated the greatest likelihood to tune45+out
53%in
under sixty seconds at 16%. This number drops to 5% in those 35
years of age and older.
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a 1824 16% Less than 1 minute
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1 to
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Men 28%
35+ 5%
k
1 to 10 minutes
her
in its entirety including ads, or are 49% 51% MEN 25% 10 t
40%
05 you more likely to skip35%
through ads WOMEN 38% Mo
Watch in
and watch the recording in segments?
Men 38%
3544 35%
entirety
515 37%
For all the conjecture that no one watches
Women 35%
30%
Skip through
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1530 17% our respondents seem
commercials anymore,
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If given the option to skip anMenInternet 1824 64%
56%Watch in
38% entirety
35% it?37%
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1530When20%
2534 24% ads
it comes to online17%
video ads, our respondents
appear to be more willing
1824/45+to bypass3544
24% 33%than they
an ad Most of the
11%
30+are with recorded/on-demand content. 45+ 53%Most of the
Depends o
56% of all respondents indicated they skip online
video ads most of the time. However, 20% dont skip
online video ads most of the time.
3544
1824-year-olds are24% most likely to skip online video 20% 2534 24%
ads most of the time, 64%, and those age 35-44 are
56%
40%
8am12pm 13%
3544 50%
20% 12pm4pm
2534 24%
20%
Base: n=2,000 Sums may not equal 100 due to rounding
4pm8pm 30%
adroitdigital.com 8pm12am 37%
ONLINE VIDEO 9
56% 3544 50%
40%
content? 8am12pm 13%
When asked what time of day our respondents 12pm4pm 20% 30
are most likely to consume video content,
over two-thirds, 67%, said they are most likely to 4pm8pm 30%
consume video content from 4pm to 12am.40% 8pm12am 37%
8am12pm 13%
ONE IS THE LONELIEST
12pm4pm NUMBER20% 30% 70%
30%
4pm8pm Are you more likely to be
By myself
consuming video content by
8pm12am 37% such
yourself or with others With friends
or family
as friends or family?
37%
Viewing video content seems to be a 50%
one-man or one-woman show. 45%
37% 63%
Women
50%
16%
45%
9%
Men 32%
30%
s
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me
27%
Rar
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ent
No Yes
Som
Women
Of t
16%
MEN 67%
9%
WOMEN 57%
50%1824 66%
3544 41%
45+ 42%
MEN 41%
45+ 51%
2534 39%
1824 36%
WOMEN 45%
s
ely
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ime
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33% 33%
Sums may not equal 100 due to rounding
Som
Of t
31% 31%
32%
adroitdigital.com ONLINE VIDEO 10
41% 59%
20%
HOME ALONE?
40%
8am12pm 13%
is driving
When it comes to a multi-screen, multi-room viewing
12pm4pm
household, are there 20%
several video screens running at
any given time?
advertisers 30%
4pm8pm
75% of our respondents indicated that there is someone
8pm12am 37%
toward
else in their home accessing video content at the same
time they are via different devices sometimes or
oftentimes. 30% indicated there are often others
50%
45%
Men 32%
30%
27%
Women
16%
9%
s
ely
ver
ime
me
Rar
Ne
eti
ent
Som
Of t
50%
Base: n=2,000 Sums may not equal 100 due to rounding
3544 41%
MEN 41%
2534 39%
24 36%
N 45%
CABLE CAN GO
If you could have all your broadcast TV needs
satisfied with an online provider like Aereo/ 37% 63%
SkitterTV/NimbleTV,
50% would you cancel your
45%
cable subscription?
subscription. 16%
ely
ver
ime
me
Rar
41% 59%
50% Yes
3544 41%
45+ 42%
MEN 41%
2534 39%
No
1824 36%
WOMEN 45%
35%
33% 33%
31% 31%
32%
ess
ors
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e
and style
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MEN 67%
9%
WOMEN 57%
1824 66%
s 45+ 51%
ely
ver
WHATS WITH THE BIG MONITOR ON
ime
me
Rar
Ne
THE WALL?
e ti
e nt
S om
Of t
3544 41%
45+ 42%
MEN 41%
2534 39%
No
1824 36%
ss
ors
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e
and style
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win
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re
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b ea
cur
Life
tom
nd
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and
and
da
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and
ws
rts
h
Ne
He
Fas
Spo
6%
46%
13%
1 to 15 seconds
16 to 30 seconds
31 seconds to 1 minute
More than 1 minute
35%
No Yes
Women
ely
ver
ime
me
Ne
eti
ent
41% 59%
50% Yes
3544 41%
45+ 42%
MEN 41%
2534 39%
No
1824 36%
WOMEN 45%
35%
33% 33%
31% 31%
32%
ss
ors
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and tyle
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Base: n=2,000
to
and
and
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and
1824 63%
Foo
alth
n
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45+ 47%
r ts
Ne
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Fas
Sp o
uty
ss
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ve
e
and style
nt s
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re
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cur
6%
Life
tom
nd
d fi
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and
da
n
Au
60 SECONDS IS A LONG TIME
and
a
Foo
alth
n
ws
hio
46%
r ts
Ne
He
13%
Fas
Sp o
To be effective, what is the optimal
length of a video ad?
1 to 15 seconds
16 to 30 seconds
31 seconds to 1 minute
More than 1 minute
35% 36% 64% 32%
Video content
Text content
MEN 69%
WOMEN 59%
1824 68%
45+ 58%
36% 64% 32% 68%
Video content Short video
Text content Text conten
MEN 69%
WOMEN 59%
1824 68%
50%
45+ 58%
23%
Base: n=2,000 Sums may not equal 100 due to rounding
50%
uty
e ss
or s
ve
e
and style
nt s
eve nt
win
re
o ti
fitn
do
b ea
cur
Life
21%
tom
nd
out
MEN 69%
and
and
da
Au
WOMEN 51%
and
Foo
alth
n
1 to 15 seconds
ws
1824 63%
hio
r ts
Ne
He
Fas
45+ 47% 16 to 30 seconds
Sp o
HOW DO YOU DO THAT? 31 seconds to 1 min
More than 1 minute
When youre searching for how-to information,
35% 36% 64%
are you more likely to search for video content Video conten
uty
ss
or s
ve
e
and style
nts
or text content?
eve nt
win
tne
6%
re
o ti
Text content
do
b ea
cur
Life
tom
nd
d fi
out
da
n
Au
and
a
seems to be breaking the rules. The old how-to guide has been
46%
Foo
alth
n
ws MEN
hio
replaced by the13%
how-to video.
r ts
Ne
He
WOMEN
Fas
Sp o
1824
Traditionally, when searching for information on how to accomplish a
45+ 58%
task or find instructions, it has been a text-based search dating back to
36%video seems
the library and, until recently, the text-based web. Online 64% 32%
to have changed something very old into something new.
1 to 15 secondsVideo content
Text content
6%of all respondents go to a video source to find how-to information
64% 16 to 30 seconds
as opposed to a text-based approach. 31 seconds to 1 minute
13% being more likely to use a video source for how-to. Those 1824
WOMEN 59%
1824 68%
compared to those 45 and older are also more likely to choose a video 50%
45+ 58%
at 68% compared to 58%.
1824 35%
1 to 15 seconds 36%
16 to 30 seconds
31 seconds to 1 minute 28%
45+ 32%
VIDEO IS THE WAY More than 1 minute 23%
35% 36% 64% 32% 68%
When seeking out new product information,
Video50%
content Short video
would you be more influenced by a short video
Text content 13% Text content
(15 seconds) or a text-based piece of content?
1824 35%
When seeking new product information, the majority of our MEN 36%69% M
0%
75%
%
100
70% of men compared to 64% of women, and 72% of those 1824 23%
5
51
0
26
36% compared to 62% of those 45 and over, would be more influenced by 68%
64% 32%
76
Video
a short video compared to a content
static or text-based piece of content. Short video
Text content 13% Text content
50%
75%
76
36%
Base: n=2,000 Sums may not equal 100 due to rounding Base: n=1,000 Sums may not equal 100 due to rounding
28%
45+ 32%
IS IT LIVE OR IS IT MEMOREX?
50%
Of all your video consumption, what
percentage is on-demand as opposed to
1824 35%
live broadcast television? 36%
36% of all respondents indicated that more than half of their video
consumption is on-demand as opposed to live broadcast television. 28%
45+ 32%
13% of all respondents watch more than 75% of their video content
23%
on-demand.
In looking across the results by sex and age groups, there seems to
be little difference in the division of broadcast versus on-demand. 13%
One may expect to see a larger delta between those 1824 and
those 45 and over.
25%
50%
75%
%
on-demand source.
100
51
0
26
76
Americans own more
devices than ever
before, and they are
spending increasing
amounts of time with
them collectively.*
Base: n=1,000
n=2,000 Sums
Sumsmay
maynot
notequal
equal100
100due
dueto
torounding
rounding
Its clear the way viewers are consuming video content is shifting quickly. The phrase video
content in and of itself is a strong indication the worlds of online, broadcast, and cable TV
are on a collision course. What traditionally has been thought of as programming is now just
another form of digital content.
The big collision wont be about the content. It will be about what supports the content
advertising. Currently, US advertisers are spending in excess of $65 billion annually on
television advertising.^ For brands, television advertising is a tried and true formula for
reaching consumers with a known and trusted measurement system established over
decades. In the digital world, it has taken online advertisers slightly over a decade to
effectively market, sell, and measure digital ads to secure digital dollars with a system that
brands understand and accept. Its inevitable there will be dollars traditionally spent on
broadcast and cable that will transition to digital dollars for video content.
This brings to the forefront another termdigital dollars, or advertising dollars. The
shifting eyes and viewing preferences of consumers are going to force television advertisers
to quickly define a unified digital strategy to keep up with viewers. To accommodate this
transition, the division of church and statetraditional and digital advertising strategiesis
going to have to change faster than advertisers will be comfortable doing.
To be successful in this brave new world of digital video content, advertisers and publishers/
broadcasters will have to wade into a quagmire of technology solutions with which they are
more than likely unfamiliar and unequipped to conquer on their own. Simply getting the
inventory supply up and running to be sold efficiently and effectively at a price floor that will
satisfy publishers/broadcasters will be a big feat. Establishing a trusted measurement
system to satisfy advertisers who control the dollars is another looming challenge.
With a world of uncertainty ahead and the rate of change affecting the world of video and
video advertising, one thing is certainthere wont be a dull moment. Agencies, brand
advertisers, broadcasters/publishers, cable systems, and ad tech suppliers all need to fasten
their seatbelts, hold on to one another, and be prepared for the ride of a lifetime. Let the
ride begin.
Contact Us
For press inquiries, please contact
Marci Stone, marci@matternow.com
Matter Communications
Sources:
* eMarketer, US Time Spent with Media: The complete eMarketer forecast
for 2014 http://www.emarketer.com/Article/Mobile-Continues-Steal-
Share-of-US-Adults-Daily-Time-Spent-with-Media/1010782
adroitdigital.com
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